Millard Corporation is a wholesale distributor of office products. It purchases office products from manufacturers and distributes them in the West, Central, and East regions. Each of these regions is about the same size and each has its own manager and sales staff.

The company has been experiencing losses for many months. In an effort to improve performance, management has requested that the monthly income statement be segmented by sales region. The companys first effort at preparing a segmented income statement for May is given below.

	Sales Region
	West				Central			East
Sales	$	311,000			$	797,000		$	701,000
Regional expenses (traceable):
Cost of goods sold		96,000				237,000			313,000
Advertising		101,000				238,000			242,000
Salaries		57,000				58,000			113,000
Utilities		9,400				16,200			13,700
Depreciation		20,000				31,000			25,000
Shipping expense		15,000				34,000			43,000
Total regional expenses		298,400				614,200			749,700
Regional income (loss) before corporate expenses		12,600				182,800			(48,700	)
Corporate expenses:
Advertising (general)		13,000				39,000			34,000
General administrative expense		21,000				21,000			21,000
Total corporate expenses		34,000				60,000			55,000
Net operating income (loss)	$	(21,400	)		$	122,800		$	(103,700	)

The cost of goods sold and shipping expense are both variable. All other costs are fixed.

Required:

3. Prepare a new contribution format segmented income statement for May. (Round percentage answers to 1 decimal place.)